WASHINGTON—In what has become an annual issue in Washington, CUNA said it is strongly urging Congress to pass long-term reauthorization of the National Flood Insurance Program (NFIP), while also stressing that flood insurance premiums must remain affordable.
The trade association shared its perspectives in a letter to the Senate Banking, Housing, and Urban Affairs Committee for its hearing on the NFIP.
“We also recognize that continuing reforms may be necessary to improve the actuarial footing of the NFIP and to ensure stability in the housing market in affected areas,” the letter reads. “At the same time, it is vital that flood insurance premiums remain affordable so that families in parts of the country where flood insurance is required are not shut out of the opportunity to own a home.
CUNA called on the committee—beyond the necessary long-term reauthorization of the NFIP—to focus on solutions that “ensure the cost of flood insurance premiums are rooted in the actual flooding risk of the property,” including:
- Improvement, expansion, and modernization of floodplain mapping
- Refunding of premiums paid on properties inadvertently included in special flood hazard areas
- Reduction of premiums based on the implementation of flood mitigation steps
‘Means-Based Discount Programs’
“CUNA strongly supports improvements to ensure flood insurance premiums are affordable, especially as the NFIP moves towards full implementation of Risk Rating 2.0 means-based discount programs on flood insurance should be carefully designed to avoid creating perverse incentives for further concentration of low-income and affordable housing in flood-prone areas,” the letter reads.
CUNA added the number of U.S. affordable housing units exposed to extreme coastal water levels is projected to triple by 2050 and encouraged the committee to take steps to avoid further exacerbation of the problem.
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